Some Malagasy authorities believe that local tobaccos could make up 
50 percent of the leaf tobacco used in Malagasy manufacturing. This share 
is estimated currently at about 330-350 tons. Volume of tobacco manufacture 
is expected to increase as the population grows. Also, as the standard of 
living increases, it is expected that there will be a trend away from "home 
use'' of the dark tobacco by the Malagasys. The younger people are expected 
to use proportionately more factory-made cigarettes in future, and less of 
the native dark tobacco in the "'raw'' form, 
Malagasy producers blame the large imports of foreign tobaccos from 
several countries, for blending, on the ability of manufacturers to secure 
foreign tobaccos at low prices and a zero import duty coupled with ease of 
importation. Some feel that there should be an import duty at least as long 
as export taxes on exported tobaccos are maintained. 
It is expected that as more light leaf is grown, and control of the 
Malagasy tobacco industry is centered more and more in the hands of the 
Malagasys themselves, less low-quality tobaccos will need to be imported, 
as domestic producers will be able to grow such tobaccos themselves, It is 
possible that less leaf, but higher quality leaf, will be imported. 
The Malagasys expect to produce tobacco for export to the Common 
Market, and accordingly plan on expansion of production of flue-cured and 
burley type tobaccos. Producers mention Switzerland as a market for Mary- 
land type tobacco and believe that some manufacturers in North Africa could 
also use Malagasy's Maryland tobacco because the local tobaccos which they 
are obliged to use have poor burning qualities. 
As a colony, Madagascar had an agreement with S.E.I.T.A. regarding 
tobacco, up to and including the 1963 crop. Asa result of independence, a 
5-year transition period in regard to marketing the Malagasy tobacco has 
been arranged for the phasing out of S.E.I.T.A.'s present role in the tobacco 
industry. Maximum quantities to be purchased by S.E.I.T.A. to date under the 
agreement (signed July 21, 1959) were as follows: 
Mil. 1b. 
EJS PEA HOO coarsest ML 
L960) venjsweisnsntomenoneheneeuemre} 
UO GH ya Me erana eae ote ican, Nae 
LOG Camels Se cuayee oem en ano 
18D OS dra cota Arata suet evaneieieO sO 
As a result of independence, a 5-year transition period in regard to 
marketing the Malagasy tobacco has been arranged for the phasing out of 
5.£.1.T.A,'s present role iin the:tobacco industry, 
The conversion to new types of tobacco, Virginia, Burley, Algerian 
dark air-~cured and Paraguayan began in earnest in 1960. 
